Door-to-door food and drink
In addition to restaurant food, home delivered groceries and beverages represent an important and promising German market. Dr. Oetker, Germany’s largest food company and largest brewing conglomerate, recognized that back in 2017, when it launched the Durstexpress beverage delivery service. In October, it agreed to buy rival flaschenpost for a reported EUR 1 billion – an indicator of the strength of the market.
The German grocery sector is worth about EUR 250 billion. Germany’s biggest grocery store chains, EDEKA and REWE, now operate their own delivery services. Amazon Fresh is also up and running in Germany, but demand for their services is so great that consumers in German cities often have to wait to get a delivery slot.
That means plenty of market potential for other, local services and international businesses. Picnic, which has a Dutch parent company, has begun serving the western German state of North Rhine-Westphalia, and the Czech company Rohlik is expanding to Munich under the name Knuspr. There is plenty of scope and capacity for similar services in other German cities and regions, too.
Moreover, traditional e-commerce staples like clothing still offer plenty of growth potential. Chinese discount fashion retailer Shein, for example, has recently started doing business in Germany. It’s a trend that is unlikely to stop, regardless of how the coronavirus pandemic pans out.